Senate Faces Crunch Time to Pass Landmark Crypto Clarity Bill

The Senate has only two weeks to pass the landmark crypto Clarity bill before it goes into recess, leaving the industry in limbo. The bill aims to settle jurisdictional battles between the SEC and CFTC while creating a regulatory home for digital assets.

Lawmakers have been stuck on the bill for months, with intense negotiations producing a compromise between crypto advocates, traditional finance, and consumer groups. However, the fragile coalition is now under strain as the banking lobby has mounted a last-minute push for changes to key sections defining stablecoin regulation and custodial asset treatment.

The push came just four days before the expected vote, catching Capitol Hill staff off guard. The banks argue that the current drafting gives nonbank issuers an unfair advantage in the stablecoin market, while stablecoin firms and fintech lobbyists dispute this as a delay tactic to protect legacy payment infrastructure.